2.1.1. The purpose of the Senior Executive Accountability Regime (SEAR) is to improve governance, performance, and accountability in firms by placing obligations on firms and senior individuals within them to set out clearly where responsibility and decision-making lies for their business and by setting out what those responsibilities entail. Individuals that occupy a Pre-Approval Controlled Function (PCF) role at in-scope firms are subject to the SEAR.

2.1.2. The IAF Act provides that the Central Bank can specify by way of regulations:

(i) Inherent Responsibilities: the aspects of a firm's affairs for which a PCF role holder has inherent responsibility. Each PCF role at in-scope firms has core responsibilities inherent in that role.

(ii) Prescribed Responsibilities: Prescribed Responsibilities are those responsibilities, including the management and oversight of key risks, which a firm must allocate to an individual carrying out a PCF role at in-scope firms.

(iii) Other Responsibilities: Other Responsibilities relate to material business areas, activities, control and management functions and specific projects which are within their remit but are not captured by the Inherent Responsibilities or Prescribed Responsibilities. See paragraphs 2.4.17-2.4.20 for further guidance in relation to these responsibilities.

(iv) The SEAR Regulations set out the Inherent Responsibilities for each PCF role at in-scope firms, a list of Prescribed Responsibilities and the meaning of Other Responsibilities.